U.S. consumer confidence declined in September, after a slight increase in August, according to a report released by the Conference Board Tuesday.
The Conference Board said its consumer confidence index, a much-watched index, fell to 79.7 in September from 81.8 in August.
“Consumer Confidence decreased in September as concerns about the short-term outlook for both jobs and earnings resurfaced, while expectations for future business conditions were little changed,” said Lynn Franco, Director of Economic Indicators.
The Confidence Board also reported that the Present Situation Index grew to 73.2 from 70.9.
Meanwhile, the Expectations Index fell to 84.1 from 89.0 last month.
The Board said that consumers’ outlook for the labor market in relation to jobs and income grew more pessimistic.
Those anticipating more jobs in the months ahead decreased to 16.9 percent from 17.5 percent, while those anticipating fewer jobs increased to 19.7 percent from 17.2 percent.
The proportion of consumers expecting their incomes to increase declined to 15.4 percent from 17.5 percent.
“While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead,” Franco added.
The waning confidence of U.S. consumers comes amidst the real possibility of a government shutdown and Republicans’ intransigence over raising the debt ceiling.
